[New York Stocks] Amazon's Strong Earnings Drive Tech Rally... Nvidia Reclaims Top Spot in Market Cap

Nvidia Reclaims Top Spot in Global Market Capitalization, Surpassing Apple in Just Four Days

Amazon's strong earnings revived investor sentiment in technology stocks, driving New York stock markets broadly higher on July 31 (local time). Nvidia, the leading artificial intelligence (AI) semiconductor company, reclaimed its position as the world’s most valuable company by market capitalization from Apple after just four days.

On the New York Stock Exchange, the Dow Jones Industrial Average closed at 52,485.03, up 276.97 points (0.53%) from the previous session. The S&P 500 rose 52.09 points (0.70%) to finish at 7,489.72, while the Nasdaq Composite climbed 251.68 points (1.00%) to close at 25,373.85.

A trader is looking at the ticker board at the New York Stock Exchange (NYSE) in the United States. Photo by Yonhap News.

Amazon led the rally. In its earnings announcement after the prior day’s close, Amazon reported that its quarterly revenue surpassed $200 billion for the first time, driven by growth in its cloud business. As a result, the stock surged by 15.32%.

Nvidia also contributed to the strength in tech shares, closing up 2.93% at $200.75. Based on the closing price, its market capitalization rose to about $4.86 trillion, allowing Nvidia to overtake Apple and reclaim the global top spot.

In contrast, Apple was the only major tech giant to suffer a steep decline. Apple’s share price plunged 7.35% to close at $308.91, shrinking its market value to around $4.54 trillion.

Apple’s warning during its earnings announcement that revenue growth could be limited between July and September due to supply chain constraints dampened investor sentiment. Additionally, there were concerns that rising memory prices have increased iPhone production costs, and that the resulting product price hikes could lead to weakened consumer demand, amplifying the sell-off.

Most leading tech stocks, including the world’s top three cloud companies—Alphabet, Microsoft, and Amazon—ended higher. While recent earnings confirmed solid growth in the cloud and AI infrastructure markets, it appears that selling was concentrated solely on Apple, which was singled out for its supply chain pressures.

This content was produced with the assistance of AI translation services.